%  Creates model with three-period time to build.
%  Capital takes three periods to build.
%  Productive capital is the first element of
%  the capital vector, while k2 and k3 are
%  work in progress.
%  It requires labor input to convert stage-i capital
%  into stage i+1 capital.
%  We use preference specification 1.
phic=[1 0 0 0]'
phii=[1 .2  0 0 ]'
phig=[0 -1 0 0; 0 0 1 0 ; 0 0 0 1]'
gamma=[.11 0 0;0 0 0 ; 0 .02 0; 0 0 .02]
deltak=[.95 1   0; 0 0  1   ; 0 0 0]
thetak=[0 0 1]'
deltah=0
lambda=0
pih=1
thetah=0
a22=[1 0 0;0 .5 0; 0 0 .4]
c2=[0 0;1 0; 0 1]
ub=[30 0 0]
ud=[1 1 0;0 0 0;0 0 0;0 0 0]
x0=[0 300 0 0 1 0 0]
beta=.97
